Nigeria’s foreign exchange (FX) reserves have reached their highest level in three months, standing at $33.58 billion, as the naira has shown stability in recent weeks.
This marks an increase from the reserves’ previous peak of $33.82 billion on March 28, according to data from the Central Bank of Nigeria (CBN).
The reserves had dipped to a low of $32.11 billion on April 19, raising concerns about the nation’s financial health. However, in the last two months, the reserves have grown by $1.47 billion.
The naira has been relatively stable, trading between N1,480 and N1,490 per dollar at the official exchange rate, averaging N1,481/$1 this month.
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On Thursday, the naira closed at N1,485.36, a 0.15 percent depreciation from Wednesday’s rate of N1,483.02, as reported by the FMDQ Securities Exchange Limited. In the parallel market, the naira steadied at N1,490 per dollar.
This stability coincides with Nigeria securing a $2.25 billion loan from the World Bank to support economic reforms. Fitch Ratings, an international credit rating agency, has projected that the naira will end the year at N1,450 per dollar.
Additionally, Rand Merchant Bank in Lagos anticipates that the naira will strengthen in the coming months as the pressure from forward central bank foreign exchange contracts eases, following the market’s absorption of the equivalent of $1.3 billion in May.
Forex liquidity has also improved, with the average turnover for June to date at $199 million daily, compared to $168 million during the same period in May. The total forex turnover in June has reached $2.1 billion over 11 trading days.
